As of February 1, North Macedonia has implemented a new framework for the procurement of electricity aimed at offsetting losses in its national transmission network. This initiative, part of the country’s Energy Law, signifies a strategic shift in how the transmission system operator, MEPSO, manages the energy necessary for maintaining grid stability.
MEPSO has successfully completed its inaugural procurement cycle under these new regulations, which will cover the delivery period from February to March 2026. This revised model positions MEPSO as a more proactive entity within the market, enhancing its legal and commercial standing, particularly in acquiring electricity for technical loss compensation. The adjustments made to the regulatory framework were designed to promote transparency and ensure equal treatment among all eligible market participants.
A significant aspect of the updated procurement process is the introduction of multi-segment daily procurement. This approach allows purchases to be aligned more closely with actual hourly loss patterns, thereby improving forecasting accuracy and reducing financial exposure. Suppliers are also afforded greater flexibility by being able to submit bids only during periods when they have available generation capacity.
Another notable change is the elimination of the modulation coefficient that previously restricted participation from certain suppliers. By removing this barrier, MEPSO has broadened market access and facilitated more adaptable bidding structures. In addition, the minimum bid threshold has been lowered to 1 MW, enabling smaller domestic producers to actively participate in tenders. This adjustment encourages a wider range of bids reflecting actual production capabilities over selected time frames, thereby enhancing overall market competitiveness.
<pUpon bid submission, MEPSO evaluates offers based on price and quantity for each time segment and awards contracts starting from the most economically advantageous proposals expressed in euros per megawatt-hour until the required energy volume is secured for each period.
<pAccording to MEPSO's assessments, this new procurement framework yields both operational and financial advantages. It enhances flexibility in managing network losses, improves planning precision, increases supplier participation, and reduces imbalance costs. Preliminary outcomes suggest significant savings; electricity prices realized during the first procurement cycle under these revised rules were approximately 10% lower in February and 4% lower in March compared to the same months in 2025.
